Financial news

The Malta Stock Exchange Index fell more than seven points, or 0.2 per cent, to close at 3,461.067 in relatively light trading of 29,671 shares across 25 deals. Only a single issue of the five to trade in the session managed to stay out of negative territory.

Shares of Simonds Farsons Cisk plc suffered the biggest loss on the day, dropping 7c, or 4.0 per cent, to end the day at €1.700 in just two trades for a total of 791 shares.

Stock of the local telecommunications provider, Go plc, were also lower, shedding 1c, or 0.7 per cent, to end at €1.480 on volume of 6,000 shares across three deals.

The equity of the local airport operator, Malta International Airport plc, fell by 1c, or 0.6 per cent, to close at €1.760, in two trades for a total of 2,000 shares.

In the banking sector, Bank of Valletta plc shares fell 1c, or 0.3 per cent, to close the day at €2.939 in eleven deals for a total of 8,780 shares.

HSBC Bank Malta plc, meanwhile, managed to avoid the sell-off and closed unchanged at €2.950 on volume of 12,100 shares across seven deals.

Trading in the corporate bond market continued to be light as €100,400 nominal across 21 deals were executed. The bond market was also victim to the lack of investor confidence in the day as three of the six bonds to trade in the session closed lower while the remainder ended unchanged.

Weekly US economic review

In the US, non-farm payrolls came in above consensus in March, with the 216,000 increase confirming the acceleration in employment growth. Analysts were expecting growth of 190,000 for the month while the majority of the gains came from broad-based increases in the services sector. The unemployment rate fell by one-tenth to 8.8 per cent, with the drop caused by outright payroll gains and not changes to labour force participation.

Further positive news was provided by the March Institute for Supply Management (ISM) manufacturing index, which remained near a six-year high. The index declined slightly, to 61.2 from 61.4, but February’s reading was the highest since 2004.Last Friday’s report corroborates the recent strength in regional indices, while the employment index, which remained close to its highest reading since 1973, supports the recent strength in manufacturing payrolls.

On the downside new orders received by US factories dipped unexpectedly in February, breaking a three month streak of gains, hampered by a drop in transportation orders. The Commerce Department said new orders for manufactured goods fell 0.1 per cent to $446 billion, after an upwardly revised 3.3 per cent gain in Janaury.

US Construction spending also fell more than anticipated in February to its lowest level since October 1999, pulled down by weakness in both private and public construction. The level of construction spending for the month dropped by 1.4 per cent over January, while analysts were expecting a smaller drop of 0.2 per cent.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.